Category Archives: Entrepreneur Resource

2010 came to a close whether we like it, or not, and will repeat itself in 2011 unless we make changes like described in the last post. In this edition, I would like to simplify things a bit in structure, but not in technique. You need 2011 to be a good year, right? Not just better than last year, I hope. How about this for a change? Let plan for an outstanding year. Here’s how:

you have to WANT it to be outstanding. That’s right, you have to want it. Want it real bad. So bad, that you can almost taste it. I’m talking desire here. Sprinkle in a little motivation and intent the a thick helping of passion, then you are ready to consider step two.

you must BELIEVE it can be outstanding. You also have to believe YOU are capable of making it outstanding. Yes, you, all by yourself, or better yet, with the help of others. Just make sure those others believe in you, so you can be brought up, not pulled down. Praisers, not nay-sayers. For if you think about it, it’s the nay-sayers that will keep you where you are, not help you get going. I heard someone say once that a strong belief is mightier than the overwhelming facts. Enough said, just believe! Now you are ready for step three.

clearly UNDERSTAND what is required to make you and/or the endeavor successful. My clients would tell you I call this the “Stages and Steps”. The stages are the larger goal or objective and the steps are the smaller actions or activities that push me toward the accomplishment of the goal. It does not matter so much how many stages or steps are involved, as long as you know all of them, and can simplify them as you progress to satisfy each one of them. Be honest with yourself as to which will be easy and which will be hard. Also note the ones you can do alone versus those you will need help with. Creating this list of dependencies early will help out greatly in the end.

Get GOING! Move forward! Take the first step! We have a major problem in this country with the word GO. We almost fear it, as if it makes us more vulnerable or involves way too much risk. In an economy like this one, the real risk-takers are the ones waiting for something to happen, before they will make a move. Well, this strategy may leave you behind. Way behind!

I would be remiss if I did not quote a famous man who lived and breathed these values, and who’s legacy we take time to honor today. He wanted, believed and understood what he desired could be true, real and accomplished. Martin Luther King Jr. said in a speech “human progress is neither automatic nor inevitable… Every step toward the goal of justice requires sacrifice, suffering, and struggle; the tireless exertions and passionate concern of dedicated individuals.

Will you be that dedicated individual in your own life? This one you have to decide for yourself. As my father used to say…choose wisely!

It’s that time of year again. It’s January and for us business owners, that signals the time to close out 2010. What that translates to is simple to say, but a pain to complete. If you have not already done so, get ready to complete the following:

Issue 2010 W-2’s

If you have employees, you have to run reports from your accounting software and print your W-2’s. Many companies buy the package from a local office supply, but did you know you can order the forms from the IRS for free? You just have to do this in advance to allow for shipping to your location. While the W-3 does not need to be sent to the Social Security Administration until March, you do have to give the employee their copies by January 31.

Issue 1099’s

If you use contractors in your business, and paid them over $600 over the course of the year, you need to issue them a 1099. Most businesses use the MISC form, but the type of industry, services offered or the vendor may dictate otherwise. Check with you local CPA to get good advice. Again, the forms need to be sent to the government within the next few weeks, but the contractor copies should be mailed by January 31 as well.

Run Year End Reports

I recommend my clients run the Balance Sheet by quarter and the Income Statement by month, to provide to the accountant. You may also want to run a receivables report, cash flow and the vendor reports (which you will need to use for your 1099’s). One other report that comes in handy is the Sales Tax detail and summary reports, which may be required for quarterly and annual filings. If you run a trial balance, you may discover some discrepancies at the surface level. If you do, you will need to make correcting journal entries to properly reflect the accurate financial status of your company.

If you expect a tax refund this year, you may want to get all your documents, receipts and other details together and head to your tax preparer as early in the season as possible. Others who may be applying for college assistance will also need to have these documents ready, as many of the required form submissions will need to have these attached, or at a minimum, the numbers from the tax forms included.

In any case, the early bird stands to benefit here, so do not procrastinate or delay this year. The sooner this is behind you, the better.

Many prospects ask me why I create a strategic plan as part of the marketing process with my clients. You may be wondering the same thing. I actually recommend small business owners have at least one major planning document in their business. The ones I create have four parts to them, which are:

Standard Business Plan, which tells the overall story of the business while including goals, objectives and a strategy to achieve them,

Strategic Plan, which is the comprehensive marketing plan, including the elements of marketing, media plan and strategy to grow the company (I consider both traditional and social media elements in the plan),

Communications Plan, which includes the details of how your company communicates with the internal and external client, including the media outlets and reporters,

Transition Plan, which contains the details related to operations of the company in the absence of the owner or strategic management team.

While most of my competition doesn’t get this detailed in their planning, this mirrors the process of many of the larger companies considered Fortune 100-500. How would I know? I did two stints in the Corporate World totaling seventeen years, in a variety of positions ranging from Accounting and Financial Planning to Marketing and Operations, with a little management and supervision sprinkled in. These items are “standard operating procedure” for them. See my LinkedIn profile for more information.

Let me give you some brief history as to why I spent years in other peoples sandboxes. We had a very successful family operated business with my father at the helm. Way back in the early 70’s as I was just preparing to enter my teen years, my dad asked me to do two things for him, which at the time seemed very strange (considering I was very young and he was my current age). He asked me to go to college and get a degree in business. Why I asked, to which he replied, “so you can learn things I could never teach you”. The second request that followed years later was to graduate and get a job in “big business”, the 70″s term for Corporate America. Again, the why child in me inquired, to which I was told, “so you can bring big business techniques back to small business”. Hey dad, I thought at the time, do you see what I see? I am a kid you know, but he saw past my age and spoke to my potential. It didn’t dawn on me until many years after his passing as to how wise he really was. Mom was not too bad in her own right, knowing to let me make the little mistakes on my own, but guarding against the major ones by seeking advice from experts in their respective occupations, like accounting and law.

I honored both requests although I murmured much along the way. I saw little benefit in the midst of the journey, but reaped great dividends when experiences propelled me past my knowledge and pushed my limits of understanding. I have many people to thank for who I am today, and much of it would be to the wonderful managers, peers and teams I had the privilege or working with in both Corporate career choices. I am friends with many of them, and hope to be until the end of my days.

If you would like to know more about how you can make your business operate more like “big business”, feel free to give me a call. I hope this makes you think about your business, no matter how small. It may not seem so significant today, but if your vision is to build a viable business to last for generations, I say start with a plan and work the plan each and every day. Set goals and make them measurable. Make mistakes, just learn from them. Surround yourself with many counselors, for their is safety in numbers. One day, you may look back, just like Gates and Jobs do today, and say when the camera pans your way to ask you how you make it, “Hi mom. Thanks for believing in me. Love ya!”.

The FriendDA, created by RandsInRepose, it is a wonderful reminder of how simple business can be, if we just let it. There was a day where business was done over a handshake. Where people could be taken at their word. Where there was no “fine print” or hidden clauses (“the portion of the document, usually a contract, that contains qualifications or restrictions in small type, usually intended to be ambiguous or obscure”). Interesting that the intent is to be ambiguous?

Here are the parameters of a simpler way…

This agreement is entered into this ___ day of ___ 20__ by and between _____________ (hereinafter “The Advisor”) and _____________ (hereinafter “The Keeper of the Idea” or “I”) regarding information The Keeper of The Idea is choosing to share with The Advisor (hereinafter “The Idea”).

WHEREAS I possess a bright idea that I am choosing to disclose to you, The Advisor, with the mutual understanding that you are my friend and that you will not screw me.

Manners of screwing include, but are not limited to:

Adapting some or all of The Idea for your own purposes.

Choosing to share some or all of The Idea with those who are not bound to this agreement.

Failing to do your best to protect The Idea.

This is a “warm blanket” agreement with which, by requesting your agreement to it, I am helping myself sleep at night by placing a small amount of formality on the sharing of The Idea. I believe The Idea will only improve as a result of having solicited your honest and clear feedback.

Term

The term of this agreement shall continue until The Idea is no longer confidential.

Breach

This agreement has absolutely no legal binding. However, upon breach or violation of the agreement, I will feel free to do any of the following:

Curse you under my breath.

Publicly disclose the manner of your screw-i-tude.

Write about your transgressions in ALL CAPS.

No longer consider you a person with whom I can share my ideas.

Sharing

Sharing of some or all of The Idea with third parties may occur provided that you have cleared this with me and the third parties agree to the principles of the FriendDA.

Termination

Termination of this FriendDA can be executed by either party, but don’t be a douche.

You are acknowledging and agreeing to this disclosure by reading it. If you find any part of this agreement uncomfortable or confusing, don’t sweat it. We’ll talk about something else.

This is intended to be fun and resourceful and should not replace your current NDA or other contract you currently use. The final word on any contract you use in your business should always have the approval of your Attorney. But how I wish for the day that that would not be so…

While this may be an old adage, and mere words you might say, they are powerful and true. People who run toward problems, not away from them, who deal with them swiftly instead of ignoring and procrastinating, have incredible advantages in business. One advantage is longer customer retention rates, since the customer feels cared for. Another is higher profit margins, since your customer service is so high.

So, how do you improve your problem solving skills. I’ll give you a good start in three simple, but challenging steps.

Identify the problem and the root cause of it. Think of a tree here. The source of strength is in the roots, not the trunk or leaves. An example, the problem may be lack of sleep, but the root cause is stress. The secret is to peel the onion back another layer or two to determine what is causing the stress. Could it be lack of financial resources in a tight economy?

Attempt to identify multiple solutions to the problem, without constraints. Brainstorming with a spouse, parent, sibling, child or friend who is not emotionally attached to the outcome is critical here. Many times kids see life simply and therefore their minds are not cluttered with killer word “can’t”, so do not overlook them when it comes to difficult issues. Be creative here!

Create a plan and Prioritize the actions you identify in the plan.

Some like to write lists that contain the pros and cons related to the process. Others use white boards to collect the deluge of ideas that come from a “no dumb idea” brainstorming session. Still others will seek out expert advice before committing to a plan. Whatever process works for you should be considered.

The key is to do something that moves you toward a solution, rather than nothing that can make the situation worse with time. One thing to avoid…don’t keep digging a deeper hole. While some may say put down the shovel, I say use the shovel wisely. Making hand and foot holds in the side of the hole will create an opportunity to escape, which is the desired outcome in the end.